BANGALORE: Industrial Development Bank of India (IDBI) will be making an application to the Reserve Bank of India in mid-2007 to launch its own mutual fund and insurance business is to set to take off by June or July, Chairman and Managing Director, V. P. Shetty, told reporters here on Saturday.

"The insurance venture is in its final stages with the first policy to be issued in two months from now and recruitment of personnel is actively on. We expect to grow the insurance business to Rs. 750 crore over the next few years," he said.

After inaugurating the Indiraanagar branch here, which also houses IDBI's Retail Asset Centre, he said overseas operations were set to expand this fiscal with branches in Singapore and Bahrain and representative offices in Moscow, Beijing and Dubai.

IDBI is likely to maintain its prime lending rate (PLR) at 12.75 per cent this fiscal and the mergers and joint ventures already effected would add to its assets base, Mr. Shetty said.

As on December 31, 2006, the aggregate balance sheet size was Rs. 97,754 crore and 25 per cent of its deposits were Current Accounts and Savings Accounts and the bank's total deposits and advances were almost an equal match, placing it in a special position among banks of its size, he said.

"While we will follow the RBI directions on fresh bonds, those maturing this year will have the option of being renewed.

Our advances to the infrastructure sector will also continue as more airports and highways are built," Mr. Shetty said.

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